Regional solar push opens new investment opportunities

A regional partnership among Philippines, Indonesia, and Vietnam is seen unlocking new investment opportunities in solar power and battery storage by targeting the replacement of costly diesel-fired electricity generation in island and remote communities.

Launched at the 31st United Nations Climate Change Conference, the initiative seeks to attract private capital, strengthen cross-border cooperation, and expand the market for renewable energy developers and technology providers across Southeast Asia.

The partnership also seeks to accelerate commercially viable solar photovoltaic and battery energy storage system projects as countries seek cheaper and more reliable alternatives to diesel generation.

Asian Photovoltaic Industry Association (APVIA) Steering Committee Chairperson Tetchi Capellan said the partnership is expected to translate regional cooperation into bankable energy projects.

“Island communities should not have to depend indefinitely on expensive and volatile diesel generation to secure reliable electricity,” Capellan said.

The Philippines offers a sizable market for clean energy investments, with 421 of its 447 off-grid power plants, or 94 percent, still running on oil as of December 2025.

The potential savings are already evident in Cobrador Island, Romblon, where a solar and battery project reportedly halved generation costs and expanded electricity service from eight hours to round-the-clock availability.

Indonesia stands to reap similar gains.

Research by the Institute for Essential Services Reform showed that solar and battery storage could generate electricity at roughly one-third the cost of diesel under the conditions studied, with nationwide diesel replacement potentially yielding savings of up to IDR 17.2 trillion.